Since the war the growth of road transport and the continued depression in the basic industries of the country have had serious reactions on the financial prosperity of the railways. Railway revenues have fallen off, but it has not been possible to effect a proportionate reduction in expenditure because by its very nature a railway is burdened with a large proportion of fixed costs. The railways, moreover, whatever may be the position in regard to other types of transport, have to meet without subsidy of any kind all the expenses, both capital and annual, involved in providing and working their road, signalling, stations, and rolling stock.